Beyond The Numbers: 7 Analysts Discuss Rockwell Automation Stock

Providing a diverse range of perspectives from bullish to bearish, 7 analysts have published ratings on Rockwell Automation ROK in the last three months.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $272.71, with a high estimate of $305.00 and a low estimate of $245.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 4.98%.

Decoding Analyst Ratings: A Detailed Look

A clear picture of Rockwell Automation's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Rockwell Automation. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Rockwell Automation compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Rockwell Automation's stock. This analysis reveals shifts in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Rockwell Automation's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Rockwell Automation analyst ratings.

All You Need to Know About Rockwell Automation

Rockwell Automation is a pure-play automation competitor that is the successor entity to Rockwell International, which spun off its former Rockwell Collins avionics segment in 2001. The firm operates through three segments--intelligent devices, software and control, and lifecycle services. Intelligent devices contains its drives, sensors, and industrial components, software and control contains its information and network and security software, while lifecycle services contains its consulting and maintenance services as well as its Sensia JV with SLB.

Rockwell Automation: Delving into Financials

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Decline in Revenue: Over the 3 months period, Rockwell Automation faced challenges, resulting in a decline of approximately -6.57% in revenue growth as of 31 March, 2024. This signifies a reduction in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 12.46%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Rockwell Automation's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 7.41% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Rockwell Automation's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 2.33%, the company showcases efficient use of assets and strong financial health.

Debt Management: Rockwell Automation's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.15, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

The Basics of Analyst Ratings

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.